3 Energy Stocks Nudging The Industry Higher

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 15 points (0.1%) at 17,122 as of Wednesday, Aug. 27, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,719 issues advancing vs. 1,312 declining with 167 unchanged.

The Energy industry as a whole closed the day up 0.3% versus the S&P 500, which was unchanged. Top gainers within the Energy industry included Lilis Energy ( LLEX), up 11.4%, Tengasco ( TGC), up 2.4%, Enerjex Resources ( ENRJ), up 3.5%, Lucas Energy ( LEI), up 1.9% and KiOR ( KIOR), up 4.6%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

KiOR ( KIOR) is one of the companies that pushed the Energy industry higher today. KiOR was up $0.00 (4.6%) to $0.11 on light volume. Throughout the day, 511,786 shares of KiOR exchanged hands as compared to its average daily volume of 790,900 shares. The stock ranged in a price between $0.10-$0.11 after having opened the day at $0.11 as compared to the previous trading day's close of $0.10.

KiOR, Inc., a renewable fuels company, produces and sells cellulosic gasoline and diesel from lignocellulosic biomass using its proprietary biomass-to-cellulosic fuel technology platform. KiOR has a market cap of $7.1 million and is part of the basic materials sector. Shares are down 93.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate KiOR a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates KiOR as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on KIOR go as follows:

  • KIOR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 95.69%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • KIOR INC has improved earnings per share by 6.7% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, KIOR INC reported poor results of -$3.20 versus -$0.92 in the prior year. This year, the market expects an improvement in earnings (-$0.92 versus -$3.20).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Oil, Gas & Consumable Fuels industry average. The net income increased by 2.4% when compared to the same quarter one year prior, going from -$31.34 million to -$30.59 million.
  • Net operating cash flow has increased to -$21.73 million or 14.83% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -6.15%.
  • The revenue growth greatly exceeded the industry average of 2.4%. Since the same quarter one year prior, revenues rose by 43.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

You can view the full analysis from the report here: KiOR Ratings Report

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At the close, Lucas Energy ( LEI) was up $0.01 (1.9%) to $0.53 on light volume. Throughout the day, 62,358 shares of Lucas Energy exchanged hands as compared to its average daily volume of 123,600 shares. The stock ranged in a price between $0.51-$0.54 after having opened the day at $0.54 as compared to the previous trading day's close of $0.52.

Lucas Energy, Inc. operates as an independent oil and gas company in Texas. Lucas Energy has a market cap of $17.1 million and is part of the basic materials sector. Shares are down 46.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Lucas Energy a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates Lucas Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LEI go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income has significantly decreased by 70.3% when compared to the same quarter one year ago, falling from -$0.62 million to -$1.05 million.
  • Net operating cash flow has decreased to -$0.36 million or 28.67% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 58.74%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, LUCAS ENERGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 43.57% is the gross profit margin for LUCAS ENERGY INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, LEI's net profit margin of -91.65% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Lucas Energy Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Enerjex Resources ( ENRJ) was another company that pushed the Energy industry higher today. Enerjex Resources was up $0.24 (3.5%) to $7.00 on light volume. Throughout the day, 342 shares of Enerjex Resources exchanged hands as compared to its average daily volume of 9,100 shares. The stock ranged in a price between $7.00-$7.00 after having opened the day at $7.00 as compared to the previous trading day's close of $6.76.

Enerjex Resources has a market cap of $49.8 million and is part of the basic materials sector. Shares are down 18.1% year-to-date as of the close of trading on Tuesday.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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